A two wheeler loan is the simplest way to purchase a scooter or a bike as it lets you repay the amount in affordable EMIs.
The Covid-19 induced lockdown has been lifted from many parts of the country, but the pandemic is not over yet. Therefore, everyone needs to follow the safety protocols and take steps that can keep potential health risks because of the deadly virus at bay. Travelling in a personal vehicle at this time looks more secure than using public transport. Having a two wheeler is one of the easiest and affordable ways to manage your daily commute to the office.
If you are planning to buy a two wheeler, but falling short of funds, then you can take the help of a loan to own a fancy scooter or a superbike. A two wheeler loan is the simplest way to purchase a scooter or a bike as it lets you repay the amount in affordable EMIs.
If you are in the market to avail of a two wheeler loan, make sure that you compare the loan offerings by various lending institutions. Compare the loan products on various factors such as eligibility criteria, interest rates, processing fees, repayment tenure, loan to value (LTV) ratio and charges etc. Do check the amount your lender will fund and how much you would have to pay as a down payment.
Additionally, before applying for a two wheeler loan, do check if you have a healthy credit score of 750 or above. A healthy credit score will help you get a loan at a lower interest rate. The lowest interest rate currently starts at 6.85% offered by the Bank of India. You will also be required to submit certain documents to ascertain your age, income, identity and income while applying for a loan, according to BankBazaar.
If you want to take a two-wheeler loan, take a look at the table below that lists over 20 prominent banks that are presently offering some of the lowest interest rates on two-wheeler loans. This table only includes the lowest advertised rates for each of the banks listed. The applicable interest rate may differ and would depend on your age, income, credit score and eligibility requirements of your lender.
The table also includes indicative EMIs for a two-wheeler loan amounting to Rs 1 lakh taken for three years for each of the banks.
Two-wheeler loan interest rates and indicative EMIs currently being offered by leading banks
Disclaimer: Interest rate on two wheeler loans for all listed (BSE) public and private banks (except foreign and small finance banks) have been considered for data compilation. Banks for which data is not available on their website have not been considered. Data collected from respective bank’s websites on November 16, 2021. The lowest interest rate offered by the banks on two wheeler loans have been shown in the table, irrespective of the loan amount and tenure. Indicative EMIs have been calculated on the basis of interest rate mentioned in the table for a Rs 1 lakh loan with a tenure of 3 years (processing fee and other charges are assumed to be zero for EMI calculation). The information mentioned in the table is indicative and may vary depending on the bank’s terms and conditions. ^Rack Interest Rate; ^^Average interest charged on loan disbursed to individual during Q2 FY 2020-21.
Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.